{"id":688,"date":"2021-03-04T13:32:46","date_gmt":"2021-03-04T13:32:46","guid":{"rendered":"http:\/\/www.jointpublicissues.org.uk\/?p=9556"},"modified":"2021-03-04T13:32:46","modified_gmt":"2021-03-04T13:32:46","slug":"reaction-to-the-budget","status":"publish","type":"post","link":"https:\/\/standrewsurcrustington.org.uk\/?p=688","title":{"rendered":"Reaction to the Budget"},"content":{"rendered":"
<\/div>\n

In this Budget, the Chancellor faced the difficult task of
\nsetting financial and economic priorities at a time when unprecedented support
\nhas been needed, and continues to be needed, to help the country get through
\nthe pandemic. As well as setting out plans for the extension of that support,
\nhe had to address the need to restart the economy, ensure the sustainability of
\npublic finances, and tackle long-term challenges such as climate change.<\/p>\n

Here, analysis of how the Budget measures will affect some
\nof the areas of particular concern to the Churches is offered by policy
\nspecialists from the Joint Public Issues Team of the Baptist, Methodist, United
\nReformed Churches and the Church of Scotland.<\/p>\n

Coronavirus support: vital extensions<\/strong><\/p>\n

The extensions to the furlough scheme, expansion of other coronavirus
\nsupport schemes, and continuation of the \u00a320 a week uplift in Universal Credit
\nare all welcome and necessary measures. They will be a crucial support to many individuals,
\nfamilies, charities and businesses over the coming months as Covid restrictions
\ncontinue. <\/p>\n

Universal Credit: uplift to end in September<\/strong><\/p>\n

Looking ahead, the Chancellor announced that from September
\nthe Universal Credit uplift will come to an end. This means the lowest income
\nfamilies will face a cut of \u00a320 a week or over \u00a31,000 a year from September. Universal
\nCredit supports people in low-paid jobs, those looking for new employment and
\nthose who can\u2019t work due to illness or disability. These are the very people
\nwho have been hit hardest financially by the pandemic and for whom the jobs
\nmarket looks bleak. Even with an increase to the minimum wage, withdrawing this
\nsupport will push many into poverty, and cannot be right. <\/p>\n

Debt: no provision for families weighed down by debt<\/strong><\/p>\n

People on low incomes are also those who are most likely to
\nhave needed to borrow simply to make ends meet over the past year. Over 6
\nmillion families are behind on bills because of the pandemic, and the best
\nestimate is that families have needed to take on \u00a310 bn in additional debt.<\/p>\n

The Churches, as part of the Reset the Debt campaign<\/a>, have asked the government to put a strategy in place to address this household debt crisis, and proposed a Jubilee Fund to support low-income families who have been forced to borrow by the lockdown. The Budget was a missed opportunity for the Chancellor to address this issue. There are real concerns for the welfare of families trapped by lockdown debt, facing a difficult jobs market and now a reduction in Universal Credit.<\/p>\n

Climate change: beyond
\nthe headlines<\/strong><\/p>\n

The Chancellor touted the budget as laying the foundations
\nfor a greener economy and providing a stimulus for decent, well-paid, green
\njobs. The incorporation of the net-zero target into the remit for the Bank of
\nEngland\u2019s monetary and financial policy committees is significant, and the
\nestablishment of a National Infrastructure Bank to support a green revolution
\nis welcome, though financial backers of new green technology will need
\nconfidence that the payback from green investment works from both financial and
\nclimate perspectives.<\/p>\n

However, the headline green initiatives mask a failure to address
\nthe fundamental changes that are needed to transition to a green and just economy.
\nThe freeze on fuel duty, and pegging the Carbon Price Support rates at \u00a318 to
\n2023, suggest this commitment is half-hearted. The \u2018super deduction\u2019 tax break scheme
\nthat allows businesses that are investing in new equipment to reduce their tax
\nbill is available regardless of whether that investment is directed towards environmentally
\ndamaging economic activity or towards green investment.<\/p>\n

International development: breaking promises<\/strong><\/p>\n

While the Chancellor made much of the Budget delivering on
\npromises, the Government still seems intent on breaking its manifesto
\ncommitment to spend 0.7% of national income on international development \u2013
\nbreaching a promise made to the electorate and the world\u2019s poorest people. The
\nimplications of this decision will be felt in some of the most vulnerable
\ncommunities of the world. For example, this week the UK announced it was
\nhalving the support it gives to humanitarian work in conflict-torn Yemen,
\ndespite the UN Secretary-General warning\u2019s that cutting aid would be \u201ca death
\nsentence\u201d. The UK is the only G7 country to be reducing its overseas aid
\ncommitments at a time when the pandemic has pushed 150 million people worldwide
\ninto extreme poverty.<\/p>\n

Rethinking priorities: From recovery to flourishing<\/strong><\/p>\n

As we begin to emerge from the coronavirus crisis, an
\neconomic recovery programme that is primarily focused on seeking financial
\ngrowth and keeping businesses afloat regardless of the cost to the wellbeing of
\ncommunity and creation will not address many of the long-term concerns we have
\nas Churches. We need a recovery that is productive, inclusive and resilient.
\nDecisions around government spending must prioritise the urgency of the climate
\ncrisis while also supporting and strengthening local communities, and we look
\nforward to contributing to discussions about the future.<\/p>\n

Read our vision for how the economy could be re-shaped to enable the wellbeing of all people and the planet: From Recovery to Flourishing<\/a>.<\/em><\/p>\n

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